Buying a Business in North Dakota
Purchasing a business can be a worthwhile investment, but whether it is purchased by an individual or another company, the transaction is complicated.
Purchasing a business occasionally involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by North Dakota and Federal law.
What Parts of the Business Am I Buying?
The purchase of a business in Mandan is actually the purchasing of a right called "control". With this right, a party can direct business operations as it sees fit, it acquires ownership of business assets, and it assumes liability for all business debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is acquired through a process known as "due diligence". Federal and North Dakota guidelines define the process of due diligence, and occasionally legal consequences arise when these procedures are not followed properly. Following the procedure of due diligence faithfully, however, leads to a better informed decision about the purchase of the business. It can also help the ownership transfer to go more smoothly.
How Much Will the Business Cost?
The price of a business depends on the value of the ownership stake that is necessary to exert control, and this in turn is determined somewhat by the value of the business property and the type of business. The procedure for how the right of control can be transferred or modified is defined by particular laws in North Dakota. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Mandan Attorney Help?
The laws in North Dakota place many unique demands on parties seeking to purchase businesses. An attorney in Mandan, North Dakota can inform you of the particularities of your investment as it relates to local law, as well as advise you of the least costly route to acquiring control.